AIMS APAC REIT - RHB Invest 2024-05-08: Continues To Ride The Logistics Wave; BUY

• AIMS APAC REIT (SGX:O5RU)’s 2H/FY24 DPU fell short of our estimates on higher financing costs and management fees in cash.
• The key highlight continues to be its stellar portfolio rent reversions for logistics assets, which are expected to continue, albeit at a moderate pace (FY25F) with stable occupancy. Asset enhancement contributions should start to kick in later this year.
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Strong rent reversions

• Strong rent reversions for 4Q/FY24 of 32%/24% were primarily driven by its Singapore logistics & warehouse portfolio which continues to benefit from strong market rent growth and its under-rented nature.
• For FY25, over half of AIMS APAC REIT's 18% of leases expiring are from logistics assets. Management guided that rental reversions will be in high single digits to low double digits.
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Ongoing redevelopment of two assets; ROI of 7-8% expected.

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Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-05-08 SGinvestors.io

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